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STEFANIZZI PROFESSIONAL CORPORATION
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TOWNSHIP OF JOHNSON
Asset Management Plan
August 30, 2023
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TABLE OF CONTENTS
INTRODUCTION
4
PROJECT APPROACH
7
ASSET MANAGEMENT POLICY
8
ABOUT THE TOWNSHIP OF JOHNSON
10
STATE OF LOCAL INFRASTRUCTURE
11
PORTFOLIO OVERVIEW
17
BUILDINGS
24
ROADS
30
BRIDGES & CULVERTS
37
MACHINERY & EQUIPMENT
41
WATER & SEWER
47
LAND
54
FINANCING STRATEGY
55
CONCLUSION: AVERAGE ANNUAL TAX CHANGE
60
Appendix A - Capital Forecast Summary and Schedules
1
Appendix B - Map of the Town
3
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August 30, 2023
Township Of Johnson
1 Johnson Drive, P.O. Box 160
Desbarats, Ontario
P0R 1E0
To the Staff, Management, and Council of the Township of Johnson
On behalf of Stefanizzi Professional Corporation, I would like to thank you for the opportunity to work
with the Township on a Comprehensive Asset Management Plan Project as approved by your Township
council.
This project has resulted in the development of a comprehensive Asset Management Plan in accordance
with the requirements of Ontario Regulation 588/17 for the Township of Johnson.
To accomplish this objective, we have split the project into three main deliverables:
1. Asset Management Processes and Staff Training
2. Asset Register and Level of Service Framework Workbooks
3. Final Asset Management Plan Report
As we have embarked on this journey together, the final stop is preparing the Asset Management Plan
document enclosed within. This will help the Township move forward in an evolving, data-centric world
to assist with budget and other decision-making.
Sincerely,
Jerry Stefanizzi, B.Comm., CA, CPA
Stefanizzi Professional Corporation
Chartered Professional Accountant
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INTRODUCTION
OVERVIEW OF ONTARIO REGULATION 588/17
In December 2017, the Province of Ontario had approved Regulation 588/17 ("the Regulation")
to update the guidelines of the province related to Municipal Asset Management Planning. This
Regulation serves as an update to the 2012 - Building Together: Guide for Municipal Asset
Management Plans. It is the province's goal to help each Municipality develop a modernized,
data-based approach to their Asset Management Plans.
From the presentation prepared by the Ministry of Infrastructure on the new Regulation dated
September 19, 2018, the following guidance was provided in relation to the goals for data
collection:
1. One of the primary goals of the regulation is to gain a better understanding of the
infrastructure challenges municipalities face.
2. Improving the standardization and consistency of asset management planning
information will help the province and municipalities achieve this objective.
3. The province is considering the possibility of leveraging the Financial Information Return
process to collect asset management planning information to gather a more complete
picture of municipal infrastructure needs.
4. The Ministry of Municipal Affairs and Housing is currently in the process of conducting a
pilot project to test the collection of municipal asset management planning information.
5. The purpose of this pilot is to seek input from local governments on how to collect key
information on municipal asset management and to foster discussions around long term
financial sustainability.
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REGULATION TIMELINE
The new Regulation has been subject to a highly regimented approval process spanning all the
way back to the early 2016. The Province of Ontario has required any municipality seeking
provincial capital funding to prepare an asset management plan under this framework, in order
to demonstrate how the funding would fit into its current and future spending. It has several
upcoming deadlines required by each Municipality divided into three phases. A high-level
summary of the Regulation requirements are as follows:
Phase One: will document the state of local infrastructure for all core assets, their current level
of service, as well as expected costs to maintain these service levels. Core assets include roads,
bridges, as well as sewer and water infrastructure.
Phase Two: will expand on Phase One to include all assets (i.e., buildings and other equipment).
Phase Three: is the final stage, done to incorporate a future-oriented strategy to help budget and
fund necessary expenditures to provide the desired level of service for all infrastructure systems
in the Town.
July 1,
2022
Phase One - Core Assets
July 1,
2024
Phase Two - All Assets
July 1,
2025
Phase Three
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The following is taken from the Ministry of Infrastructure Municipal Asset Management
Planning Regulation (O. Reg. 588/17) presentation dated September 19, 2018. The deadline for
each phase has been extended one year since the original presentation.
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PROJECT APPROACH
As stated above, the overall approach to the municipal development of asset management
practices has been a detail-oriented, modular approach. In 2018, the Municipal Finance Officers'
Association of Ontario (MFOA) published an Asset Management Framework (AMF) to assist
Ontario municipalities assess and improve their "maturity level" in all aspects of asset
management planning. We will continue to refer to this framework throughout the plan as we
cover the various sections of Municipal Asset Management.
The foundation of this document is to inform all municipal stakeholders on these results, for
how staff and management have evolved their asset management practices. This is not only in
accordance with the new regulation but based on the original Asset Management Framework
described herein. The goal is to help provide a true cultural overhaul and improved process at
the highest level of decision-making, given the new tools available such as the Comprehensive
Asset Register.
A sample maturity diagram from the framework is provided below:
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ASSET MANAGEMENT POLICY
On September 20, 2023, the Township of Johnson passed Bylaw 2023-1080. Schedule "A" to
the Bylaw details the Strategic Asset Management Policy of the Municipality. The Policy
itself provides guidance as to how staff and Council will interact with the Asset Management
Plan, the Asset Register, and the Level of Service Framework, in accordance with the new
Regulation.
STRATEGIC ASSET MANAGEMENT POLICY - O. REG. 588/17
3. (1) Every municipality shall prepare a strategic asset management policy that includes the
following:
1. Any of the municipality's goals, policies or plans that are supported by its asset
management plan.
2. The process by which the asset management plan is to be considered in the development
of the municipality's budget or of any long-term financial plans of the municipality that
consider municipal infrastructure assets.
3. The municipality's approach to continuous improvement and adoption of appropriate
practices regarding asset management planning.
4. The principles to be followed by the municipality in its asset management planning, which
must include the principles set out in section 3 of the Act.
5. The municipality's commitment to consider, as part of its asset management planning,
i. the actions that may be required to address the vulnerabilities that may be caused by
climate change to the municipality's infrastructure assets, in respect of such matters
as,
A. operations, such as increased maintenance schedules,
B. levels of service, and
C. lifecycle management,
ii. the anticipated costs that could arise from the vulnerabilities described in
subparagraph i,
iii. adaptation opportunities that may be undertaken to manage the vulnerabilities
described in subparagraph i,
iv. mitigation approaches to climate change, such as greenhouse gas emission reduction
goals and targets, and
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v. disaster planning and contingency funding.
6. A process to ensure that the municipality's asset management planning is aligned with any
of the following financial plans:
i. financial plans related to the municipality's water assets including any financial plans
prepared under the Safe Drinking Water Act, 2002.
ii. financial plans related to the municipality's wastewater assets.
7. A process to ensure that the municipality's asset management planning is aligned with
Ontario's land-use planning framework, including any relevant policy statements issued
under subsection 3 (1) of the Planning Act, any provincial plans as defined in the Planning
Act and the municipality's official plan.
8. An explanation of the capitalization thresholds used to determine which assets are to be
included in the municipality's asset management plan and how the thresholds compare to
those in the municipality's tangible capital asset policy if it has one.
9. The municipality's commitment to coordinate planning for asset management, where
municipal infrastructure assets connect or are interrelated with those of its upper-tier
municipality, neighbouring municipalities or jointly owned municipal bodies.
10. The persons responsible for the municipality's asset management planning, including the
executive lead.
11. An explanation of the municipal council's involvement in the municipality's asset
management planning.
12. The municipality's commitment to provide opportunities for municipal residents and other
interested parties to provide input into the municipality's asset management planning.
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ABOUT THE TOWNSHIP OF JOHNSON
OVERVIEW
Township Population
YEAR
POPULATION
1991
685
1996
729
2001
658
2006
701
2011
750
2016
751
2021
749
From 1991-2011, the Township experienced a slight increase in population from
658 citizens of the community to 750 citizens as of 2011 (see the available Statistics
Canada census). However, this figure has been relatively stable since 2011, without
any major expectation of change in population moving forward.
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STATE OF LOCAL INFRASTRUCTURE
REQUIREMENTS UNDER ONTARIO REGULATION 588/17
The new regulation stipulates the following requirements with respect to asset inventories to be
included in a municipalities' asset management plan:
1. A summary of assets in each category
2. The replacement cost of the assets in each category
3. The average age of the assets in each category, determined by assessing the average age
of the components of the assets.
4. The information available on the condition of the assets in each category
5. A description of the municipality's approach to assessing the condition of the assets in
the category, based on recognized and general engineering principles.
GENERAL ASSET MANAGEMENT INFORMATION
Each municipality manages their capital assets to provide services to their local community. The
key questions with each municipality are about how well current services are performing, how
to efficiently spend capital funding to maintain these current levels of service, and whether these
services can be improved.
The new asset management regulation is all about data, as detailed in the five components above
about what is required to be compiled in a municipality's asset inventory (otherwise known as
the asset register).
PREPARING THE ASSET REGISTER - KEY FINDING
Given the size of the Township of Johnson, what becomes readily available is the ability to store
all data requirements in one comprehensive asset register. A comprehensive asset register is
made of up all the integrated data sources to be analyzed and compiled by Township staff. Having
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multiple asset registers would create significant challenges, with the potential for inconsistencies
in the data between each of the registers used.
SECTIONS OF DATA COMPILED IN THE ASSET REGISTER
Physical Data - These components include all the data required to maintain the levels of services
that each asset provides. This includes attributes such as general description, location, size,
material type, and condition rating.
Financial Data - These components include all the asset financial details such as historical cost
and replacement value. In part, the financial asset register forms part of the system that meets
the Public Sector Accounting Board 3150 standards for tangible capital assets.
As a result of the comprehensive asset management plan project, the physical and financial asset
registers exist in one data warehouse with the use of Microsoft Excel. This will allow the Town to
easily navigate all historical physical and financial data for the Town.
CLASSIFICATION OF DATA COMPILED IN THE ASSET REGISTER
To appropriately lineup the reporting requirements of the municipality, the asset data is classified
and analyzed in two separate categories. This includes the physical asset type or how it serves its
community.
Asset Data by Asset Type - typical asset types for any municipality include Land, Building,
Equipment, Furniture, Roads, Bridges, as well as Water & Sewer Infrastructure. Each asset type
is depreciated by their individual useful life, as some assets will depreciate quicker than others
simply because of its type. Per the capital asset policy of the Town,
Asset Data by Municipal Service - for management reporting purposes, municipal operations
and activities are organized by segment funds standardized across the province of Ontario. Funds
were created for the purpose of recording specific activities to attain certain objectives in
accordance with special regulations, restrictions, or limitations.
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Municipal services are provided by departments and their activities are reported in these funds
with descriptions as follows:
General government
The administration department oversees the delivery of all government services. The
department is responsible for ensuring that there are adequate policies and procedures in place
to safeguard assets and to properly report financial activities. In addition, this department
includes the governance activities of council.
Protection services
Protection is comprised of the police, fire/emergency, by-law enforcement and building
inspection departments. The mandate of the police is to ensure the safety of the lives and
property of citizens; preserve peace and good order; prevent crimes from occurring; detect
offenders; and enforce the law. The fire/emergency department is responsible to provide fire
suppression service; fire prevention programs; training and education related to prevention,
detection, or extinguishments of fires. The by-law enforcement and building inspection
department ensures properties are following applicable legislation, by-laws, building standards
and construction codes.
Transportation services
The transportation department is responsible for the delivery of municipal public works services
related to the planning, development and maintenance of roadway systems, winter control and
street lighting.
Environmental services
The environmental department provides garbage collection and waste minimization programs
and facilities for solid waste disposal.
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Health services
Through the Algoma Health Unit, the municipality contributes to public health services and
education and through the Algoma District Services Administration Board, to ambulance services.
In addition, this department oversees the care and maintenance of municipal cemeteries.
Social and family services
Through the Algoma District Services Administration Board, the municipality contributes to social
assistance payments, childcare services, and social housing.
Recreation and cultural services
The recreation and cultural department provide public services that contribute to neighbourhood
development and sustainability through the provision of recreation and leisure services such as
parks, arena, fitness, and sports programs. It provides public services that contribute to healthy
communities through partnerships, promotion, prevention, protection, and enforcement. The
department also contributes towards the information needs of the municipality's citizens
through the provision of library services.
Planning services
The planning department provides a diverse bundle of services. It manages development for
business interests, environmental concerns, heritage matters and neighbourhoods through
planning and community development activities. It facilitates economic development by
providing services for the approval of all land development plans.
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OTHER NOTES ON DATA COMPILATION & ASSET REGISTER
Linear vs. Non-Linear Assets
Data regarding non-linear assets is much easier to keep track of, as each asset exists on
its own (i.e., equipment, automotive)
Data regarding linear assets will have slightly different financial data columns. Year of
original purchase to become year of replacement as they are location based and must
always exist.
Capitalized Repair vs. Linear Asset Replacement
For capitalized repairs of linear assets, simply add the amount capitalized to the total cost
based of the asset. Amortization will also proportionally increase as well, based on
remaining useful life as a percentage of total useful life.
For replacements of linear assets, the book value of the existing asset will need to be
written off in the year of replacement. The replacement will require three rows in the
register only for the year it occurred. The first line to contain the original asset information
(for the asset being disposed), the second line for the disposal (a subtraction of the first
line) and another third line for the new replacement. The year of replacement will then
be updated to the current year on the third line. The first two rows can then be removed
after the fiscal year.
Linear Asset Financial Data Allocation
As part of this project, all cost and amortization amounts are to be re-allocated for linear
assets based on segmented locations (i.e., FROM - TO). This allocation will be based on
the square meters of each asset as a % of total square meters of each section.
Useful lives of individual assets will then be manually modified in the current year only
(by adjusting the year of replacement) based on their condition rating. However, the
ending accumulated amortization amount will be kept in mind to not stray too far from
the 2021 ending amount per the financial statements.
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DEFINITIONS OF LIFECYCLE ACTIVITIES & OPTIONS AVAILABLE
The Ontario "Building Together Guide for Municipal Asset Management Plans" defines an asset
management strategy as the set of planned that will enable the assets to provide the desired
levels of service in a sustainable way, while managing the risk, at the lowest lifecycle cost. Each
municipality will need to develop their own unique asset management strategy, based on their
individual asset lifecycles, to obtain maximum output out of minimum costs. The actions defined
and identified within lifecycle activities detail how assets, should be maintained, renewed,
rehabilitated, and disposed or expanded upon. Activities are defined as follows:
Non-Infrastructure Solutions - include policies, processes, or strategies that reduce asset related
costs and improve asset performance resulting in better service life. Examples include integrated
infrastructure planning, land use planning, demand management, insurance, process
optimization, managing failures, and the development of procurement policies.
Maintenance Activities - include the regularly scheduled costs to inspect or maintain assets. In
some cases, this can include one-time repair costs that aren't considered capital expenditures.
(i.e., see Section 3150 of the PSAB financial reporting framework for the definition of a
"betterment").
Rehabilitation Activities - include significant repairs that in many cases extend asset life and
improve service levels. These activities would me the direct definition of a betterment as
described by PSAB Section 3150.
Replacement Activities - includes the identification of assets that no longer meet or are worth
extending their service life. Involves the disposal of an asset currently in use for the replacement
of a newly acquired asset. Assets that are linear in nature are typically not "replaced" since there
are classified by the FROM-TO location.
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PORTFOLIO OVERVIEW
ASSET CATEGORIES INCLUDED IN THIS PLAN.
This asset management plan summarizes the state of the infrastructure for the Towns asset
portfolio and establishes current levels of service of the associated technical and customer oriented
key performance indicators (KPIs) for the asset categories listed below:
Buildings
Roads
Bridges & Culverts
Machinery & equipment
Water & sewer
Land
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ASSET CONDITION RATINGS
A condition assessment rating system provides a standardized descriptive framework that allows
comparative benchmarking across the Town's asset portfolio. Asset conditions are determined
based on visual inspections performed by management & following the criteria indicated below
based on number and severity of deficiencies found.
CALCULATING THE REINVESTMENT RATE
The reinvestment rate is a measurement of available or required funding relative to the total
replacement costs. This is used to determine the town's ability to maintain good asset conditions
and maintain the desired level of service.
By comparing the actual vs. target reinvestment rate, the town can determine the extent of any
existing funding gap. The reinvestment rate is calculated as follows:
Total replacement costs
Annual capital Funding
Total replacement costs
Target Reinvestment Rate =
Actual Reinvestment Rate =
Annual capital requirement
Condition
Rating
Criteria
Risk of failure
Very good
9 - 10
Very low
Good
7 - 8
Low
Average
5 - 6
The asset is showing some signs of deterioration
and may require some attention.
Moderate
Poor
3 - 4
High
Very poor
1 - 2
Very high
Asset shows little or no signs of deterioration and
should only require basic maintenance and
upkeep.
The asset exhibits obvious signs or deterioration
and should be monitored more closely or some
form of intervention undertaken to improve the
condition.
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TOTAL REPLACEMENT COSTS OF ASSET PORTFOLIO
Total replacement costs for the asset portfolio amount to $64.6 million and are predominately
attributable to the Townships roads and buildings. These amounts are calculated by user-defined
cost allocations set in each individual asset category.
25,282,000.00
25,220,603.85
5,430,000.00
2,679,097.50
3,976,792.90
2,017,900.00
Buildings
Roads
Bridges & culverts
Machinery & equipment
Water & sewer
Land
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TOTAL CONDITION RATINGS OF ASSET PORTFOLIO
Asset conditions are measured by routine visual assessments performed by management.
Collectively, 90% of the Townships assets are in average or above average condition, and the
remining 10% are in poor or very poor conditions.
0%
20%
40%
60%
80%
100%
Buildings
Roads
Bridges & culverts
Machinery & equipment
Water & sewer
Very Poor
Poor
Average
Good
Very Good
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ESTIMATED SERVICE LIFE REMAINING OF ASSET PORTFOLIO
This information is based solely on the estimated useful service life of the Towns assets,
determined by assessing historical data industry standards. To date, 37% of assets have outlived
their estimated useful lives, whereas only 10% have previously been determined to be in poor
condition. The remaining outlived assets should continue to be monitored for any signs of
deterioration. 18% of assets will outlive their useful life within the next 10 years, and the
remaining 45% have over 10 years remaining.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Buildings
Roads
Bridges &
culverts
Machinery &
equipment
Water &
sewer
Over 10 years remaining
6-10 years remaining
0-5 years remaining
No Service life remaining
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FORECASTED CAPITAL REQUIREMENTS
Projected capital requirements for asset maintenance, replacement, or rehabilitation amount to
approximatley $11 million over the next 10 years. This is determined by assessing historical data
with industry standards while factoring in current asset conditions. The majority of projected
costs stem from Roads (56%) and bridges & culverts (22%).
-
200,000.00
400,000.00
600,000.00
800,000.00
1,000,000.00
1,200,000.00
1,400,000.00
1,600,000.00
1,800,000.00
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Water & sewer
Machinery & equipment
Bridges & culverts
Roads
Buildings
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TARGET VS ACTUAL REINVESTMENT RATE
The graph portrays the funding gaps by comparing target vs actual reinvestment rates. That is,
the target annual funding that should be allocated to replacement costs based on forecasted
capital requirements versus actual annual spending on infrastructure using the available annual
funding.
0%
2%
4%
6%
8%
10%
12%
14%
16%
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Target reinvestment rate
Actual reinvestment rate
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BUILDINGS
The Township operates and maintains several facilities under various service segments such as
general government, protection, transportation, environmental, & recreational services.
Lifecycle activities specific to building assets are detailed on the next page, provided from a past
version of the municipal asset management plan.
General
Government
Municipal
office
Protection
Services
Fire Hall
Transportation
Services
Municipal
garage
Environmental
Services
Water
treatment
plant
Attendants
office
Recreation
Services
Community
hall
Arena
Farmers
market
building
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BUILDINGS: LIFECYCLE ACTIVITIES
- Typically, 40 - 50 years of useful life
Asset Lifestyle
- All buildings to adhere to the current requirements of the Ontario Building Code.
Minimum standards
- Operational Manuals for buildings to outline requirements for their use and
maintenance
Management solutions
- Regular maintenance and inspection activities to keep the structure in an
appropriate level of service before the cost of rehabilitation becomes suboptimal.
Maintenance activities
- Complete rehabilitation of building components negatively impact facility use.
Consideration given to energy saving and control systems.
Rehabilitation activities
- Procurement regarding the facility replacement to be conducted through an open
tender to receive the best value.
Replacement activities
- Sale of asset components to the highest bidder.
Disposal activities
- Purchase of additional facilities to elimated any contracted services.
Expansion activities
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BUILDINGS: REPLACEMENT COSTS
Building replacement costs have been estimated at a cost per square foot basis, based on a
detailed assessment completed by the Township's management. Recreation services,
particularly the townships community center and arena, have the highest overall square
footage and thus have the highest anticipated future replacement costs.
Service Segment
Size (Sqft)
Replacement Cost
General Government
1,956.00
465,800.00
Protection services
3,000.00
1,050,000.00
Transportation services
4,320.00
1,512,000.00
Environmental services
2,026.00
709,100.00
Recreation services
39,921.00
13,976,850.00
Grand Total
51,223.00
17,713,750.00
General government
Protection services
Transportation services
Environmental services
Recreation services
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BUILDINGS: CONDITION RATINGS
Asset condition ratings are used to determine asset lifecycle strategies and forecasted future cash
flows. Ratings are allocated based on periodic visual assessments by management.
The average condition of the town's facilities is good (7/10). Transportation services (municipal
garage) and protection services (Fire Hall) have average condition ratings and should be most
closely monitored in the future for potential condition deterioration. Overall, there are no
immediate concerns with building conditions.
Service Segment
Average Rating
Condition
General Government
7
Good
Protection services
6
Average
Transportation services
6
Average
Environmental services
7
Good
Recreation services
7
Good
Average
7
Good
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
General Government
Protection services
Transportation services
Environmental services
Recreation services
Very Poor
Poor
Average
Good
Very Good
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BUILDINGS: AVERAGE AGE AND ESTIMATED SERVICE LIFE
The estimated useful life is determined by analyzing both industry standards and assessments
done by management. This information assists in planning for future maintenance. Asset
conditions will gradually decay as the average age increases.
The municipal garage, has exceeded or nearly exceeded its estimated useful life. The municipal
office and community hall have recently received major rehabilitations (both built from the studs
in) to significantly extend their useful life. Therefore, based on the previously discussed condition
ratings, there is no immediate concerns with the building conditions and therefore no significant
replacement costs required at this time.
Average age
(years)
Estimated
useful life
Average service life
remaining
General government
28
30
2
Protection services
19
35
16
Transportation services
50
50
0
Environmental services
25
50
25
Recreation services
26
36
10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
General
government
Protection
services
Transportation
services
Environmental
services
Recreation
services
Over 10 years remaining
6-10 years remaining
0-5 years remaining
No service life remaining
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BUILDINGS: FORECASTED CAPITAL REQUIREMENTS
The below forecast is estimated based on historical data, while factoring in current asset conditions and
estimated remaining useful service lives. An average of $75,000 per year is needed to maintain building's
service expectations.
Average annual capital requirements:
125,111
$
-
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
70,000.00
80,000.00
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Average annual capital requirements: $75,000
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ROADS
As a core asset, the municipalities road structures are a critical component of providing safe and efficient
transportation services. Lifecycle activities specific to road assets are detailed below, provided from a past
version of the municipal asset management plan.
GRAVEL ROADS: LIFECYCLE ACTIVITIES
-50 years of useful life based on PSAB 3150
Asset Lifecycle
-Consideration to design speed, minimum right of way, road width, subbase, base, and
horizontal radius
Minimum Standards
-Load limits at critical times and preventing heavy traffic. Amalgamated tenders for
asset supply.
Management Solutions
-Regular maintenance and inspection activities, including brushing, ditching, and
shoulder stripping. Complete new ditching to provide proper road base drainage,
culvert replacement, and frost treatments. Repair of cracks and other potholes with
rout & seal. Additional spot treatments.
Activities
-Processing of existing asphalt and underlying granular. This can include a complete
restoration of the asphalt surface with new asphalt.
Replacement Activities
-Providing proper connect with other roads or extending road service.
Expansion Activities
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ASPHALT ROADS: LIFECYCLE ACTIVITIES
-20 years of useful life based on PSAB 3150
Asset Lifecycle
-Consideration to design speed, minimum right of way, road width, subbase, base, and
horizontal radius. Also, a review of asphalt surface volume
Minimum Standards
-Load limits at critical times and preventing heavy traffic. Amalgamated tenders for asset
supply. Integrating road work with other infrastructure investments
Management Solutions
-Regular maintenance and inspection activities, including brushing, ditching, and shoulder
stripping. Repair of cracks and other potholes with rout & seal. Patching of potholes and
cracks with cold mix to prevent additional breakup.
Maintenance Activities
-Complete new ditching to provide proper road base drainage, culvert replacement, and
frost treatments. Repair of cracks and other potholes with rout & seal. Additional spot
treatments.
Rehabilitation Activities
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ROADS: INVENTORY AND REPLACEMENT COSTS
Replacement costs are estimated based on an allocated cost per meter for gravel and for
asphalt treated linear data. These cost allocations are based off historical data & a cost
assessment completed by management. Based on a higher surface area, asphalt treated roads
are projected to have higher replacement costs in the future.
Length
Surface area (m)
Replacement cost
Asphalt treated
24,185
462,425
23,648,415
Unpaved roads
65,765
170,075
1,572,189
Total
89,950
632,500
25,220,604
Replacement costs
Unpaved roads (Gravel)
Asphalt treated
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ROADS: CONDITION RATINGS
Condition ratings are determined by township management based on periodic visual
assessments. Roads are routinely checked to plan maintenance activities & note any significant
deficiencies.
The average road's condition is good (7/10). Most of the maintenance is attributable to asphalt
treated roads, where 90% of the surfaces are in either good or very good condition. For unpaved
(gravel) roads, 50% are in good or very good condition, and the remaining are average or below
average. The roads in below average condition likely require immediate upgrading and should be
reflected in the townships financial forecast.
Asset
Average rating
Condition
Unpaved roads (Gravel)
6
Average
Asphalt treated roads
8
Good
Average
7
Good
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Unpaved roads (Gravel)
Asphalt treated
Very Poor
Poor
Average
Good
Very Good
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ROADS: AGE AND ESTIMATED SERVICE LIFE
The estimated useful life is determined by analyzing both industry standards and assessments
done by management. This information assists in planning for future maintenance. Asset
conditions will gradually decay as the average age increases.
Asphalt treated roads are newer in comparison to gravel and have a remaining estimated useful
life of 10 years. Unpaved roads have on average, extended beyond their estimated useful lives.
Although most appear to be in at least average condition, there is a small percentage that is poor
and likely require maintenance or replacement.
Average age
(years)
Estimated useful
life
Average service life
remaining
Unpaved roads (Gravel)
57
50
0
Asphalt treated
18
28
10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Unpaved roads (Gravel)
Asphalt treated
Over 10 years remaining
6-10 years remaining
0-5 years remaining
No Service life remaining
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ROADS: FORECASTED CAPITAL REQUIREMENTS
The below forecast is estimated based on historical cost data, while factoring in current asset
conditions and estimated remaining useful service lives. An average of $623,200 per year is
needed to maintain the roads conditions.
-
200,000.00
400,000.00
600,000.00
800,000.00
1,000,000.00
1,200,000.00
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Average annual capital requirements: 623,200.00
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ROADS: LEVEL OF SERVICE ANALYSIS
Community Levels of Service - Quality
Example One - Asphalt Treated Road (Lake Huron Drive)
Example Two - Gravel Treated Road (Johnson Drive - Township Office)
Technical Service Level - On average, the condition of the Township's roads is good. 50% of asphalt roads
and 90% of gravel roads are in good or very good condition. The Township has land area of 120.27 million
meters squared (or 120.27 km squared) with road platform area of 632,500 meters squared (see above).
This results in 0.005% of all municipal land area covered by a roads surface.
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BRIDGES & CULVERTS
BRIDGES & CULVERTS: REPLACEMENT COSTS
Maintenance of bridges & culverts is another required component of services being provided.
There are eight bridges & five culverts in located in the Township. Replacement costs are
determined by individual assessments of the specifically identified assets.
Location
Replacement cost
[BR1] - Carter
$700,000
[BR2] - Grasley
$55,000
[BR3] - Portlock corner
$700,000
[BR4] - Suddaby
$800,000
[BR5] - Suddaby park
$350,000
[BR6] - Black creek
$800,000
[BR7] - Sucker creek pudd
$500,000
[BR8] - Sucker creek pudd
$200,000
[CVT1] - Desbarats river
$350,000
[CVT2] - Sucker creek pudd
$275,000
[CVT3] - Sucker creek CASS
$275,000
[CVT4] - Desbarats river
$300,000
[CVT5] - Government Road
$125,000
Total
5,430,000
Culverts
Desbarats river
Sucker creek Pudd
Sucker creek CASS
Desbarats river
Government road
Bridges
Carter
Grasley
Portlock corner
Suddaby
Suddaby park
Black creek
Sucker creek Pudd
Sucker creek Pudd
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BRIDGES & CULVERTS: CONDITION RATINGS
Condition ratings are determined by town management based on periodic visual assessments.
Management routinely checks these asset categories to plan maintenance activities & note any
significant deficiencies.
The average condition rating for bridges and culverts is good (7/10), with 40% of culverts and
60% of bridges in good or very good position. Suddaby bridge and Desbarats river culvert are in
poor condition and may require renovations or replacements as soon as possible.
Location
Average rating
Condition
[BR1] - Carter
9
Very good
[BR2] - Grasley
10
Very good
[BR3] - Portlock corner
6
Average
[BR4] - Suddaby
4
Poor
[BR5] - Suddaby park
9
Very good
[BR6] - Black creek
6
Average
[BR7] - Sucker creek pudd
7.5
Good
[BR8] - Sucker creek pudd
7.5
Good
[CVT1] - Desbarats river
4
Poor
[CVT2] - Sucker creek pudd
6
Average
[CVT3] - Sucker creek CASS
6
Average
[CVT4] - Desbarats river
9
Very good
[CVT5] - Government Road
7.5
Good
Average
7
Good
0%
20%
40%
60%
80%
100%
Bridges
Culverts
Very Poor
Poor
Average
Good
Very Good
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BRIDGES & CULVERTS: AVG. AGE AND ESTIMATED SERVICE LIFE
The estimated useful life is determined by analyzing both industry standards and assessments
done by management. This information assists in planning for future maintenance. Asset
conditions will gradually decay as the average age increases.
Although most bridges and culverts have over 10 years remaining of their estimated useful
lives, Portluck Corner bridge, Suddaby bridge, and Governmend Road have extended beyond
their 50 year estimation. As stated above, Suddaby bridge is also in poor condition.
Age (years)
Estimated useful life
Average service life
remaining
[BR1] - Carter
10
50
40
[BR2] - Grasley
1
50
49
[BR3] - Portlock corner
86
50
0
[BR4] - Suddaby
110
50
0
[BR5] - Suddaby park
14
50
36
[BR6] - Black creek
6
50
44
[BR7] - Sucker creek pudd
21
50
29
[BR8] - Sucker creek pudd
23
50
27
[CVT1] - Desbarats river
22
50
28
[CVT2] - Sucker creek pudd
30
50
20
[CVT3] - Sucker creek CASS
35
50
15
[CVT4] - Desbarats river
41
50
9
[CVT5] - Government Road
31
20
0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Bridges
Culverts
Over 10 years remaining
6-10 years remaining
0-5 years remaining
No Service life remaining
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BRIDGES & CULVERTS: FORECASTED CAPITAL REQUIREMENTS
The below forecast is estimated based on historical cost data, while factoring in current asset
conditions and estimated remaining useful service lives. An average of $342,857 per year is
needed to maintain the bridges & culvert conditions.
-
100,000.00
200,000.00
300,000.00
400,000.00
500,000.00
600,000.00
700,000.00
800,000.00
900,000.00
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Average annual capital requirements:
342,857.14
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MACHINERY & EQUIPMENT
Various vehicles are needed to either maintain conditions for asset categories (such as
transportation) or provide additional services (such as rescue).
General
Government
Uniquie
Lucidia server
Misc office
equipment
Protection
Services
Fire trucks
Rescue vans
Misc fire
equipment
Transportation
Services
Plow trucks
Graders
Excavators
Lawn mowers
Environmental
Services
Control &
PLC system
Plant
upgrade
CWWF
Recreation
Services
Trailers
Docks
Compressors
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MACHINERY & EQUIPMENT: LIFECYCLE ACTIVITIES
-Typically, 10 - 30 years of useful life
Asset Lifecycle
-Consideration given to hybrid use in winter climate (i.e., snowplows and grader
attachments)
Minimum Standards
-Leasing vs. purchasing equipment. Determining lease terms given interest rate
environment
Management Solutions
-Maintenance activities based on manufacturer guidelines.
Maintenance Activities
-Individual component replacements such as suspension, tires, or individual brakes
Rehabilitation Activities
-Purchase of new vehicles and equipment through the request for quotation (RFQ)
process.
Replacement Activities
-Sale of an individual asset to the highest bidder (i.e., closed auction). Consider sale
partway through life expectancy to maximize the value of the asset.
Disposal Activities
-The purchase of additional equipment to meet expected levels of service or to provide
cost benefits by eliminating other contracted service requirements.
Expansion Activities
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MACHINERY & EQUIPMENT: REPLACEMENT COSTS
Replacement costs are determined based on the market value of the specific assets identified. A
breakdown based on municipal service is provided below. Transportation services have the
highest projected replacement costs, mainly attributable to the graders, plow trucks, and
excavators.
Service segment
Replacement Cost
General government
$86,000
Protection services
$614,000
Transportation services
$1,374,000
Environmental services
$100,000
Recreation services
$505,000
General government
Protection services
Transportation services
Environmental services
Recreation services
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MACHINERY & EQUIPMENT: CONDITION RATINGS
Condition ratings are determined by town management based on periodic visual assessments. Machinery
& equipment are routinely checked to plan maintenance activities & note any significant deficiencies. The
average condition rating is good (7/10). Assets that are in below average condition include miscellaneous
office equipment and fire rescue equipment. These should be closely monitored for further deterioration.
Asset
Average Rating
Condition
General government
6
Average
Protection services
6
Average
Transportation services
7
Good
Environmental services
8
Good
Recreation services
7
Good
Average
7
Good
0%
20%
40%
60%
80%
100%
General government
Protection services
Transportation services
Environmental services
Recreation services
Very Poor
Poor
Average
Good
Very Good
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MACHINERY & EQUIPMENT: AVG. AGE AND EST. SERVICE LIFE
The estimated useful life is determined by analyzing both industry standards and assessments
done by management. This information assists in planning for future maintenance. Asset
conditions will gradually decay as the average age increases.
Machinery & equipment placed in the protection and general government service segment
have begun to outlive their estimated useful lives. These include the miscellaneous office
equipment & fire protection equipment indicated to be in poor shape in the condition rating
analysis. Other than these assets there are no concerns identified.
Average age
(years)
Estimated
useful life
Average service life
remaining
General Government
6
9
3
Protection Services
10
15
5
Transportation Services
6
19
13
Environmental Services
5
8
3
Recreation Services
3
13
10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
General
government
Protection
services
Transportation
services
Environmental
services
Recreation
services
Over 10 years remaining
6-10 years remaining
0-5 years remaining
No Service life remaining
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MACHINERY & EQUIP.: FORECASTED CAPITAL REQUIREMENTS
The below forecast is estimated based on historical cost data, while factoring in current asset
conditions and estimated remaining useful service lives. An average of $351,000 per year is
needed to maintain the conditions of vehicles.
-
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
300,000.00
350,000.00
400,000.00
450,000.00
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Average annual capital requirements:
125,500.00
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WATER & SEWER
WATER & SEWER: REPLACEMENT COSTS
Water & sewer distribution replacement costs have been estimated at a cost per meter basis.
Other items are assessed based on a specific asset identification assessment completed by the
Township's management. Sewer collection, water treatment, and water distribution costs have
the highest anticipated replacement costs overall.
Asset
Replacement Cost
Sewer Collection
1,051,800.00
Lagoon
500,000.00
Storm Sewer
200,000.00
Water treatment
1,025,000.00
Water distribution
1,200,000.00
Grand Total
3,976,793
Sewer collection
Lagoon
Storm Sewer
Water treatment
Water distribution
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WATER & SEWER: LEVELS OF SERVICE
Areas of municipality connected to the municipal water system:
Water assets
Community Levels of Service (Qualitative Descriptions)
Description, which may include maps, of the
user groups or areas of the municipality that
have fire flow.
None
Description of boil water advisories and
service interruptions.
Notifications are posted all over interrupted
area, including local stores & post offices. In
addition, there is an advisory posted on
special media and the township website. In
the case that only a small area is affected,
residents will be notified in person.
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Technical levels of service
Percentage of properties connected to the
municipal water system
20.5%
Percentage of properties where fire flow is
available.
None
Number of connection days per year where a
boil water advisory notice is in place
compared to the total number of properties
connected to the municipal water system
5 days
Number of connection days per year due to
water main breaks compared to total number
of properties connected to the municipal
water system
None
Wastewater assets
Community levels of service (Qualitative descriptions
Description of how combined sewers in the
municipal wastewater system are designed
with overflow structures in place which allow
overflow during storm events to prevent
backups into homes.
N/A
Description of the frequency and volume of
overflows in combined sewers in the
municipal wastewater system that occur in
habitable areas or beaches.
N/A
Description of how stormwater can get into
sanitary sewers in the municipal wastewater
system, causing sewage to overflow into
streets or backup into homes.
N/A
Description of how sanitary sewers in the
municipal wastewater system are designed
to be resilient to avoid events described in
paragraph 3.
N/A
Description of the effluent that is discharged
from sewage treatment plants in the
municipal wastewater system.
Treated to abide by environmental
regulations & discharged into river after
testing.
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Technical levels of service
Percentage of properties connected to the
municipal wastewater system
18%
1. The number of events per year where
combined sewer flow in the municipal
wastewater system exceeds system capacity
compared to the total number of properties
connected to the municipal wastewater
system.
None
2. The number of connection-days per year
due to wastewater backups compared to the
total number of properties connected to the
municipal wastewater system.
None
3. The number of effluent violations per year
due to wastewater discharge compared to
the total number of properties connected to
the municipal wastewater system.
None
Stormwater management assets
Technical levels of service
Percentage of properties in municipality
resilient to a 100-year storm.
100%
Percentage of the municipal stormwater
management system resilient to a 5-year
storm.
100%
.
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WATER & SEWER: CONDITION RATINGS
Asset condition ratings are used to determine asset lifecycle strategies and forecasted future cash
flows. Ratings are allocated based on periodic visual assessments by management.
The average condition of the town's water & sewer assets is average (6/10). All assets are in
average condition, except for the lagoon which has received a recent upgrade. The water
treatment plant is in good condition, and included within the buildings section of this plan. Where
there are no immediate concerns, both water and sewer distribution lines are on the back end of
their useful life. Some issues with irregular piping ranging from 2 to 4 inches have been noted.
Assets should continue to be monitored in future periods for any potential signs of deterioration.
Service Segment
Average Rating
Condition
Sewer Collection
6
Average
Lagoon
8
Very good
Storm Sewer
7
Average
Water treatment
6
Average
Water distribution
6
Average
Average
6
Average
0%
20%
40%
60%
80%
100%
Sewer collection
Lagoon
Storm Sewer
Water treatment
Water distribution
Very Poor
Poor
Average
Very Good
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WATER & SEWER: AVERAGE AGE AND ESTIMATED SERVICE LIFE
The estimated useful life is determined by analyzing both industry standards and assessments
done by management. This information assists in planning for future maintenance. Asset
conditions will gradually decay as the average age increases.
All assets have over 10 years remaining in their estimated useful life, except storm sewers
which have exceeded their estimated useful life by 3 years. Since storm sewers have a good
condition rating of 7/10, there is no immediate need for repairs or replacement.
Average age
(years)
Estimated
useful life
Average service life
remaining
Sewer collection
33
50
17
Lagoon
2
50
48
Storm sewer
53
50
0
Water treatment
35
50
15
Water distribution
33
50
17
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sewer
collection
Lagoon
Storm Sewer
Water
treatment
Water
distribution
Over 10 years remaining
6-10 years remaining
0-5 years remaining
No Service life remaining
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WATER & SEWER: FORECASTED CAPITAL REQUIREMENTS
The below forecast is estimated based on historical data, while factoring in current asset conditions and
estimated remaining useful service lives. An average of $50,000 per year is needed to maintain water &
sewer service expectations.
-
100,000.00
200,000.00
300,000.00
400,000.00
500,000.00
600,000.00
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Average annual capital requirements: 50,000.00
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LAND
Various properties owned by Johnson township, totalling 417 acres overall. Replacement costs
are based off each property's individual assessments values. Properties owned for recreational
services have the highest assessment value of $1,032,100, which is 50% of the value of the
properties overall.
Service Segment
Acreage
Assessment value
General government
20.65
507,600.00
Protection services
0.12
144,000.00
Transportation services
25.79
104,800.00
Environmental services
252.62
195,500.00
Health services
7.43
33,900.00
Recreation services
110.03
1,032,100.00
Total
416.64
2,017,900.00
General government
Protection services
Transportation services
Environmental services
Health services
Recreation services
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FINANCING STRATEGY
OVERVIEW
An asset management financing strategy outlines the suggested approach to funding the lifecycle
management strategy (i.e. - the long-term forecast) that is proposed to be adopted by the
municipality. The financing strategy forms an integral framework for ensuring the municipality
makes optimal use of the various funding sources that it has at its disposal. It will provide a
foundation for preparing other long-term financial plans including operating and capital budgets.
The financial strategy will have a derivative impact on the following:
-
Taxation levies to the taxpayer
-
Use of available grant and related opportunities
-
Asset Management policies
-
Pricing of user fees and charges
-
Use of reserve and reserve funds where available
-
Analyzing debt levels and the impact of rate sensitivity
-
Calculation of the infrastructure funding gap
THE TOWNSHIP'S BOTTOM-UP APPROACH
The Township's plan for capital expenditure spending at a very detailed level (i.e., spending on
roads based on the specific road location). It is evident based on prior asset management plans.
This is inherently aided by the size of the Township, as all condition data can be reviewed with
significant precision during an asset inspection by a third party. This is known as a bottom-up
approach.
This practice will continue with regards to future asset management planning.
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THE FORECASTING PROCESS
Developing a Forecast by Individual Asset
Based on the completed asset register, the Township has approximately 400-500
individual assets to be managed and accounted for.
Because of the smaller size of the community, there are less assets to manage. Town
staff and council have a better ability to manage each asset individually relative to larger
cities.
The forecast infrastructure surplus or deficit calculation will derive from the summary
results of the individual forecast.
Consideration #1 - Results of the Completed Condition Assessments
Based on the completed assessment of individual asset conditions, most assets have a
rating of fair or higher
This is because the Township can visually identify and inspect conditions of individual
assets on a regular basis.
The Township uses a mostly focuses on a maintenance and rehabilitation approach to
maximize the lifecycle of each asset based on completed visual inspections.
This keeps most of the Township's assets in good working condition on an annual basis,
except for environmental infrastructure since these assets are less readily available for
inspection.
Consideration #2 - The Lifecycle Management Approach
The lifecycle management approach not only includes estimating future lifecycle costs,
but also an overview of how the asset performs over its life while providing affordable
services. This allows for a more holistic perspective instead of considering cost projections
alone in a vacuum.
Lifecycle costing is comprised of acquisition and construction, operating, maintaining,
rehabilitating, replacing, disposal, expansion, as well as non-infrastructure solutions over
the useful life of an asset. Asset managers typically strive to achieve the lowest lifecycle
cost for all assets. Definition for each individual lifecycle activity can be found in Section
Two of this report above.
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PREPARING THE FORECAST INPUTS
As a result of the completed condition assessments, along with the individual cost elements of
various lifecycle activities over the useful life of an asset, the following process will be
performed to prepare the Asset Management Forecast
(a) Non-Environmental Inputs:
For the 2023 Town Asset Management Plan, inputs will be prepared by Stefanizzi Professional
Corporation based on the ten most recent fiscal years of capital expenditures, with consideration
given to current condition ratings and lifecycles of each asset group.
From this completed project, the Township will begin to use the forecast tool, along with the
asset register, to provide better data-based decision making for their community. The Township
will begin to take a more granular approach to preparing this forecast every five years. This will
also allow major capital expenditures to be planned for well in advance (especially when then
using the AMP to apply for Government Grants in the appropriate year).
(b) Environmental Inputs:
The Township subcontracts most environmental decision making and asset investments to the
PUC. This includes condition assessments, rate studies, and other infrastructure decisions. As part
of this project, The Township is working with the PUC to provide an updated ten year forecast on
Environmental expenditures based on their assessment of the current state of local
infrastructure.
The environmental portion of their forecast took a detail approach consistent with the input
process for non-environmental assets at the individual asset level.
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ANNUAL FUNDING AVAILABLE
The Township receives approximately $779,800 in annual funding. With an average annual
spending requirement of $1,113,700, the township has a projected average annual deficit of
$333,900 per year. This equates to a total deficit of $3,339,000 after a 10-year period.
Average
Annual
Requirements
$1,113,700
Annual funding available
$100,000
infrastructure
fund
$529,800
Partnership
fund
$60,000
Community
Building fund
$90,000
interest and
other income
Average
annual deficit
($333,900)
-
200,000.00
400,000.00
600,000.00
800,000.00
1,000,000.00
1,200,000.00
1,400,000.00
1,600,000.00
1,800,000.00
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Capital requirements
Funding available
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INFRASTRUCTURE FUNDING GAP
What is the infrastructure funding gap?
As part of the long-term funding strategy, municipalities will need to calculate the level of annual
investment in capital assets that is required per this asset management plan and compare it to
the current level of funding available for capital investments. The difference between these
amounts is the infrastructure funding gap, one of the most important metrics of asset
management planning.
-
2,000,000.00
4,000,000.00
6,000,000.00
8,000,000.00
10,000,000.00
12,000,000.00
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Capital requirements
Funding received
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CONCLUSION: AVERAGE ANNUAL TAX CHANGE
This is only the beginning of the next step in continuing to build a data-based and comprehensive
asset management practice. With the completion of this asset management project, new
infrastructure has now been setup to really detail information right to the individual asset level
and allow for more informed plans on capital asset spending.
The accumulated total funding gap over the next 10 years is $3.3 million. As a financing strategy,
the Town has calculated that a 1.67% annual increase in taxation revenue is required to eliminate
this funding gap.
Average Annual
Tax Change
1.67%
STEFANIZZI PROFESSIONAL CORPORATION
APPENDIX A - CAPITAL FORECAST SUMMARY AND SCHEDULES
STEFANIZZI PROFESSIONAL CORPORATION
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STEFANIZZI PROFESSIONAL CORPORATION
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Appendix B - Map of the Township